Rajputana Stainless Limited is set to increase its production capacity from 48,000 tons to 60,000 tons, a 25% expansion, to meet growing demand. The company is also venturing into the consumer market with seamless pipes and has secured approvals for various aerospace and defense industries. This strategic move aims to enhance revenue and profitability, supported by a strong order book and a debt-free financial position.
Capacity Expansion and Market Diversification
Rajputana Stainless Limited is undertaking a significant capacity expansion, increasing its production from the current 48,000 tons to 60,000 tons. This 25% growth is driven by the company’s 100% capacity utilization and is intended to bolster revenue. The expansion is planned to be completed by the 4th quarter of 2026-27.
Entry into Consumer and Specialty Markets
Beyond expanding its existing B2B operations, Rajputana Stainless Limited is strategically entering the consumer market with a focus on seamless pipes. This move targets direct end-user sales, particularly in the oil and gas and defense sectors. The company has also achieved significant milestones, including obtaining AS9100D certification, opening doors to the high-value aerospace and defense industries. The company reports an order book of approximately INR500 crores, with about INR80 crores from the aerospace and defense sector.
Financial Highlights and Outlook
The company reported a Q2 revenue growth of 33% year-on-year to INR360 crores, with operating EBITDA up 38%. For the first half, revenue stood at INR666 crores and profit after tax (PAT) at INR43.9 crores, an increase of 80%. Rajputana Stainless Limited is now a debt-free company following the utilization of IPO proceeds for debt repayment. The company anticipates further growth and aims to end the fiscal year positively, with a long-term vision to reach 2 lakh tons capacity by 2031.
Source: BSE
